| When
it comes to insurance, usually only two types of policies
come to mind: Term
life insurance and whole
life insurance. More and more people are signing
up for universal life insurance however. Given the variety
of coverage options and flexibility, considering universal
life insurance before committing to another could be
greatly beneficial in the long run.
Universal life insurance is different
from other insurance policies in that it offers a wider
variety of coverage and options. Universal life insurance
policies can include:
-
an investment component: tax-free
funds that can be used for needs such as emergencies
or retirement and vary depending on the amount of
life insurance purchased and the length of the life
insurance policy
-
a life insurance component: whether
term life insurance, whole life insurance, or mortgage
insurance
-
a health insurance component: which
can include general health or critical illness coverage
-
additional add-ons: disability,
accidental death, accidental fracture, and coverage
for family members
The universal life insurance portfolio
is flexible both at the time of the purchase and throughout
the life of the policy because policy variables such
as premiums and the insured amount can usually be adjusted
at any time during the life of the policy.
Because of the wider variety and
coverage options available with different universal
life insurance policies, you can design complete portfolios
for yourself and your family, and you can build financial
security progressively, at your own rate, depending
on your own priorities, financial status, and family
situation, all according to as your needs change.
Depending on the
insurance company, premium payments can sometimes
be reduced or stopped while maintaining coverage using
funds accumulated with the investment component, and
are available at any time depending on conditions with
the selected investment type.
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